You may have heard the term “programmatic advertising” being tossed around in the last few years. And with the onslaught of marketing buzzwords, you may have tuned it out. What’s worse, you may have investigated it and given up due to its dense and complex nature. Either scenario is understandable, but there’s a reason strategies become buzzwords in the first place. The concept is picking up steam with no signs of slowing down. In fact, more than 80% of digital display ads in 2018 were purchased programmatically, generating over $46 billion in revenue. What’s more, this number is expected to reach $65 billion by 2020.
These numbers may be staggering, but they don’t answer the billion-dollar question: what exactly is programmatic advertising?
Instagram’s Product Director, Ameet Ranadive, describes it as “the practice of implementing an automated set of business rules to efficiently target your most valuable customers and prospects with personalized ads.” Still sounding vague? Let’s strip it back a level. According to the Oxford Living Dictionaries, it means “of the nature of or according to a program, schedule, or method.” This simple explanation may provide more clarity than that of a leading expert. Programmatic advertising is essentially the use of automated computer programs to procure the purchases of digital ads. While it does not fully automate the digital ad-buying process, it removes some of its more time- and labor-intensive elements, including proposals, quotes and negotiation. This frees up time for marketers to devote to planning and optimization.
The software used in the programmatic advertising process uses complex algorithms which can help decide where advertising resources are best allocated in a manner much faster and more objectively than the human mind. What’s more, it can launch your campaign and monitor how your ad spend is performing while looking for areas that could improve.
The programmatic advertising process can help senior living organizations target potential residents and their families by analyzing large troves of data to identify internet users who are searching for facilities, determining which among them would make the best leads, and marketing directly to them. This may be a lot of information, but it’s becoming increasingly critical to understand. Just look at the numbers listed above! A great glossary of programmatic advertising related terms can be found here. Stay tuned to our blog for more industry tips and insights.